RADNOR, Pa., March 2, 2017 /PRNewswire/ -- Safeguard
Scientifics, Inc. (NYSE: SFE) today announced financial results for
the three months and full-year ended December 31, 2016, as well as continued
achievement of developmental milestones for its 29 partner
companies. For the three months ended December 31, 2016, Safeguard's net loss was
$21.7 million, or $1.07 per share, compared with a net loss of
$14.3 million, or $0.69 per share, for the same period of 2015. For
the year ended December 31, 2016,
Safeguard's net loss was $22.3
million, or $1.09 per share,
compared with a net loss of $59.5
million, or $2.85 per share,
in 2015.
"Over the course of Safeguard's 64-year history, the Company has
always embraced change and fostered innovation," said Stephen T.
Zarrilli, Safeguard's President and CEO. "Our focus on deploying
early- and growth-stage capital in select vertical markets within
the technology sector has positioned Safeguard for another period
of dynamic growth and value realization. We remain committed to
progressive capital allocation, appropriate balance sheet leverage
and continued transparency."
Subsequent to the fourth quarter of 2016, Safeguard sold its
interest in partner company Beyond.com back to the company for
$26 million. In connection with the
transaction, Safeguard will receive $15.5
million in cash and a three-year, $10.5 million note for the balance due, which
will accrue interest at a rate of 9.5% per annum. As a result,
Safeguard will realize nearly a two-times cash-on-cash return.
Safeguard had deployed $13.5 million
in Beyond in March 2007 and prior to
the sale had a 38% primary ownership position.
2016 Highlights
- Deployed $22.9 million into four
new partner companies – Aktana, Brickwork Software, Moxe Health,
and T-REX Group – sharpening Safeguard's focus on early- and
growth-stage technology-driven enterprises and their innovative
products and services.
- Deployed $56.4 million in
follow-on funding to support the growth of 18 existing partner
companies.
- Realized $58.6 million in cash
proceeds from sale of the Company's minority equity stake in
Putney.
- Repurchased $5.4 million of
common stock in open-market transactions. Beginning in early 2014
through December 31, 2016, more than
1.9 million shares have been repurchased at a cost of $35.4 million.
AGGREGATE PARTNER COMPANY REVENUE
Aggregate partner company revenue for 2016 was $344 million, compared to $328 million in 2015 and $283 million in 2014 for those same companies.
Revenue figures for all periods reflect the reclassification of
certain costs as a reduction of revenue for our digital media
partner companies. These figures do not include new partner
companies in which Safeguard initially deployed capital in 2016 or
partner companies that were exited or written off in 2016.
For 2017, aggregate partner company revenue is projected to be
between $395 million and $420
million, an increase of 14% to 21% from 2016, which includes
revenue for all partner companies in which Safeguard had an
interest at January 1, 2017.
Aggregate revenue for the same partner companies was $348 million for 2016 and $329 million for 2015.
Aggregate revenue for all years reflects revenue on a net basis.
Revenue data for certain partner companies pertain to periods prior
to Safeguard's involvement with those companies and are based
solely on information provided to Safeguard by those companies.
Safeguard reports the revenue of its equity and cost-method partner
companies on a one-quarter lag basis.
PARTNER COMPANY HIGHLIGHTS
Significant accomplishments achieved by Safeguard's partner
companies during 2016 include:
~ Product Launches / Regulatory Approvals
~
AdvantEdge Healthcare Solutions achieved third-party
recertification for HIPAA and HITECH privacy and security
requirements for the fourth consecutive year. AdvantEdge launched
AdvantEdge Analytics A2, a web-based, near real-time specialty
physician financial reporting and analytics tool that allows the
physician or practice manager to monitor the entire revenue cycle
of the practice.
Cask Data released Cask Data Application Platform
("CDAP") 4, the first unified integration platform for big data
that enables developers, data scientists and citizen integrators to
quickly build and deploy applications, data pipelines, plug-ins,
and use case recipes on Hadoop and Spark.
CloudMine earned certification under the E.U.-U.S.
Privacy Shield, which is new legislation that was established
between the E.U. Privacy Commission and the U.S. Federal Trade
Commission to replace the decade-old Safe Harbor pact and ensure
better enforceability and guarantees of data privacy for E.U.
citizens. CloudMine also launched its HIPAA-compliant Connected
Health Cloud product, which allows users across the healthcare
spectrum to aggregate and analyze disparate data to improve patient
care.
Good Start Genetics launched an advanced version of
EmbryVu, the next-generation embryo screening test, based on its
proprietary sequencing platform and technology licensed from
Johns Hopkins University, and during
the fourth quarter of 2016, introduced the most affordable
preimplantation genetic screening ("PGS") test on the market at
$150 per embryo, broadening access
for more couples planning a family. Good Start Genetics also
launched the VeriYou genetic test for couples on Amazon, which is
Good Start Genetics' saliva-based, next-generation sequencing
("NGS") carrier screening test for two of the most common inherited
genetic disorders – cystic fibrosis ("CF") and spinal muscular
atrophy ("SMA"). Good Start Genetics is the first genetic testing
company to have a direct Amazon relationship.
Hoopla Software launched a product enhancement that
allows its customers to broadcast information on Hoopla TV displays
directly from Slack. With this latest integration, Hoopla has taken
another step in expanding the Hoopla TV platform to motivate,
engage, and align employees for customers around the world.
Integrations now include Slack, Google Sheets, Salesforce, Zapier,
Excel and the ability to import CSV files.
InfoBionic received 510(k) clearance from the U.S. Food
and Drug Administration ("FDA") for MoMe® Kardia, a
wireless, remote monitoring system designed to aid physicians in
their diagnosis of cardiac arrhythmias in patients with a
demonstrated need for cardiac monitoring. InfoBionic began shipping
the new generation MoMe® Kardia during the fourth
quarter of 2016.
MediaMath launched Adaptive Segments, which allows
agencies and marketers to transform raw data into actionable
marketing tactics and allow one-on-one conversations with
customers. MediaMath also launched Helix™, a new proprietary
data business unit which leverages global, pooled transactional
data sets with MediaMath's vast data footprint and buying platform
to evolve how marketers leverage data for programmatic
marketing.
Pneuron added new features to its business-orchestration
software, enhancing robotic capabilities and scalability. Among
other enhancements, the Pneuron platform now enables customers to
configure MS Sharepoint, MS Exchange and Unix Shell Scripts and
connect an entire enterprise ecosystem without coding.
Prognos is the new business name for Medivo. The
rebranding emphasizes the company's prowess in healthcare
artificial intelligence by enhancing the value of lab results and
diagnostic data through advanced analytics. Prognos continues to
connect with more labs and has added data on 21 medical conditions,
bringing its total to more than 30 conditions.
Propeller Health received FDA 510(k) clearance to market
its platform for use with Glaxo Smith Kline's Ellipta®
dry powder inhaler. Propeller also launched a nationwide initiative
with AMC Health to help patients with Chronic Obstructive Pulmonary
Disease ("COPD") and asthma improve disease management and reduce
symptoms and hospital visits. This multiyear partnership brings
Propeller Health's commercial programs in U.S. healthcare systems
and other organizations to more than 40.
Spongecell released a new HTML5-based video format for
personalized, data-driven interactive video advertising across
multiple devices, allowing advertisers to build, target and traffic
their messages from a self-service platform. HTML5 technology is
expected to replace Flash-based video by mid-2017.
Syapse launched its Global Partner Program, which will
leverage best-of-breed partners to enhance and accelerate the
implementation of the Syapse Precision Medicine Platform at
healthcare organizations globally. Under the program, Syapse will
build an ecosystem of partners, including system integrators, EHR
vendors, testing labs, specialty pharmacies and health plans, to
further complement the capabilities of Syapse Precision Medicine
Platform.
Transactis released Version 7.0 of its electronic billing
and payment platform, which expands application program interface
("API") support for high volume billers and seamless real-time
access to leading payment engines like Visa/CyberSource, Vantiv and
WorldPay.
Trice Medical received FDA 510(k) clearance for mi-eye 2,
a disposable needle with a fully integrated camera that enables
physicians to use advanced diagnostic imaging to visualize joint
injuries in a clinic. Launched during the fourth quarter of 2016,
mi-eye 2 is designed for use in diagnostic and operative
arthroscopic and endoscopic procedures to provide illumination and
visualization of an interior cavity of the body through either a
natural or surgical opening.
WebLinc launched its exclusive Solutions Partner Network
to offer mid-market retailers access to in-demand solutions and
ecommerce expertise. The network features a repeatable process to
help the most innovative commerce agencies, developers, and
strategists implement the Workarea Commerce Platform.
Zipnosis launched ZipTicket™, a virtual boarding pass
that gives patients access to in-clinic lab tests. In addition, the
company launched a new reseller model between Bryan Health/Bryan
Telemedicine and Memorial Health ("MHCS"). In this model, MHCS's
virtual care service is staffed by Bryan Health/Bryan Telemedicine
providers.
~ Major Customer Wins / Strategic
Partnerships ~
AdvantEdge Healthcare Solutions was contracted by
Safeguard partner company, NovaSom, to administer billing and
collection functions.
Apprenda signed a resale agreement with Cisco to
integrate the Apprenda Platform-as-a-Service ("PaaS") with Cisco
Metapod and Cisco Application Centric Infrastructure ("ACI").
Apprenda's integration with Cisco Metapod and Cisco ACI allows
Apprenda to fully deliver on the hybrid needs of enterprise
software development.
Beyond added Allstate, Advantage Solutions, Six Flags,
UPS, Johns Hopkins Health System, Maxim Healthcare, Time Warner
Cable, Charles Schwab, ConAgra Foods
and Sysco Corporation to its customer roster in 2016.
Cask Data partnered with Tableau, a global leader in
visual analytics. Cask announced deeper integration with Cloudera
Enterprise for faster time to value from Hadoop. Cask was certified
and is among the newest approved vendors in the Microsoft Azure
HDInsight partner program, enhancing security and scalability of
big data queries in the cloud with CDAP. CDAP has also been
certified on the IBM Open Platform, along with Apache Spark, and is
now available on the IBM Marketplace.
CloudMine partnered with Validic to advance integration
of patient-generated health data into clinical workflows and
Healthcare Information Systems. CloudMine partnered with rapid
mobile app development leader Alpha Software Corporation to scale
secure, HIPAA-compliant mobile app development and deployment for
healthcare and life science organizations. CloudMine also partnered
with Elasticsearch, which provides CloudMine developers with a
powerful search framework and data management layer for delivering
optimal application performance.
Clutch Holdings acquired intelligent mobile promotions
platform Persio, which is expected to provide Clutch clients with
comprehensive views of customers across all buying and marketing
channels. Clutch achieved "Built for NetSuite" certification for
its Gift, Loyalty & Automated Marketing SuiteApp, enabling
users to identify, understand and motivate their customers with
personalized engagements and experiences across online, in-store,
mobile, social, email, SMS and direct mail channels. In addition,
Retail Control Systems is integrating the Clutch platform for email
marketing and point-of-sale data collection and analysis by
Denver-area Goodwill Industries
locations beginning in 2017.
Good Start Genetics announced a partnership with Roche to
offer its carrier screening and prenatal test services to U.S.
obstetricians and general practitioners. In addition, Good Start
Genetics announced a partnership with Genome Medical to augment its
genetic counseling services for VeriYou. Good Start launched a
collaboration with Helix to develop consumer applications to help
couples better understand their reproductive health.
MediaMath and DoubleVerify announced plans to integrate
DoubleVerify data on the MediaMath platform, providing clients with
more data on digital ad quality, brand safety, fraud and invalid
traffic, viewability and targeting. MediaMath was the first to
integrate the Google DoubleClick Ad Exchange Programmatic
Guaranteed product offering premium publisher inventory to clients
in EMEA, APAC, LATAM and North
America markets. MediaMath is collaborating with Adform to
allow MediaMath TerminalOne users access to publishers on the
Adform system, while Adform gains global demand for its global
programmatic supply. MediaMath was also the first demand-side
platform to partner with Integral Ad Science to leverage its
performance matching technology to empower advertisers with the
ability to target viewability thresholds for its video
inventory.
meQuilibrium announced a partnership with Optum, a
subsidiary of UnitedHealth Group, to integrate meQuilibrium's human
resilience capacity performance and productivity software platform
into Optum's employee assistance program, and to offer it as a
standalone service. meQuilibrium made major additions to its
customer roster, including one of the largest health insurers in
North America, a major
home-improvement retailer, a Fortune 50 consumer packaged goods
company, a Fortune 500 manufacturer, and a large health insurer
reseller.
Propeller Health crafted partnerships with Molina
Healthcare of New Mexico for
asthma control, and with Vectura Group plc in the United Kingdom to develop digitally connected
inhalers using Vectura's dry powder technology. Propeller
Health partnered with Aptar Pharma, a global drug delivery
systems provider, to begin development of what is believed to be
the world's first digital, connected metered dose inhaler with an
integrated sensor and a novel electronic dose counter. Propeller
Health also announced a new commercial partnership with Humana,
whose employees are participating in the AIR Louisville
program.
QuanticMind earned Elite status in the Microsoft Bing
Partner Program for its success in growing the Bing search
advertising customer base. The Bing program allows QuanticMind
clients exclusive access to Bing Ads training, marketing and
technology development.
Sonobi announced a partnership with Bankrate as their
exclusive header management technology through the company's
server-to-server product. As a result, Bankrate will leverage
Sonobi's header tag technology to manage how they monetize their
audience and bring in other partners. Sonobi partnered with
Guardian Media Group on header bidding services. Sonobi will manage
Guardian's audience monetization. Sonobi announced a key
partnership with Omnicom Media Group's Annalect Group to integrate
Sonobi's JetstreamTM platform into OMG's premium ad
technologies so organizations can pre-qualify and purchase
audiences directly without financial intermediaries.
Syapse announced a collaboration with Biotheranostics to
combine the Syapse Precision Medicine Platform with diagnostic data
from Biotheranostics' genomic tests to help physicians find the
most effective treatment for cancer patients based on their
molecular profiles. Syapse is also partnering with Henry Ford
Health System and Catholic Health Initiatives to launch an oncology
precision medicine program to revolutionize cancer care in the
greater Midwest and across CHI, respectively. Syapse launched the
Oncology Precision Network (OPeN) in collaboration with customers
Intermountain Healthcare, Providence Health & Services, and
Stanford Cancer Institute. Syapse announced that its Precision
Medicine Platform was used by The American Society of Clinical
Oncology ("ASCO") to launch and enroll the first patients in the
ASCO's Targeted Agent and Profiling Utilization Registry study.
This groundbreaking clinical trial relies on Syapse to manage the
study workflow and capture structured clinical data from
participating hospital systems.
Trice Medical is partnering with Highmark Allegheny
Health System to conduct two clinical trials, utilizing the mi-eye
2 to diagnose meniscus injuries in the office setting, and using
the mi-eye 2 to determine proper surgical planning for those
patients undergoing a knee replacement. The clinical trials are
expected to commence in Q1 2017.
WebLinc launched ecommerce websites for Sanrio.com, the
global lifestyle brand best known for pop icon Hello
Kitty®; Lime Crime, a booming cosmetics brand based in
Los Angeles; Century 21 Department
Stores, a privately-held department store chain based in
New York City; Costume
SuperCenter, the web's largest one-stop retailer for kid and adult
costumes; Just Candy, the one-stop
shop for candy party favors and bulk from Party City Stores founder
Steve Mandell; Tahari ASL, the
affordable luxury brand catering to the professional woman in all
aspects of her life; and RachelRoy.com for Rachel Roy, an award-winning and privately-owned
women's clothing brand.
Zipnosis added several new health systems to its roster
of clients including Mission Health, Inspira Health Network,
Olmsted Medical Center, Ridgeview Medical Center and Lakewood
Regional Medical Center. Zipnosis offers health systems the option
to support their virtual care service with an outsourced clinical
staffing model. This can help health systems effectively manage
clinical capacity, go to market more rapidly or extend the hours
diagnosis and treatment is available.
~ Industry Awards ~
Aktana was named a "Cool Vendor" in Gartner's 2016 report
"Cool Vendors in Life Science." Aktana was also named one of three
Gold Technology Partners by Veeva in recognition of its ability to
provide customers with an ecosystem of proven life sciences
products, services and high quality integrated solutions that
customers can trust to help them succeed.
Cask Data was recognized as one of "20 Companies that
Changed Big Data in 2016" by Enterprise Strategy Group in its
annual Delta-V Awards. Cask was certified as a great workplace by
the independent analysts at Great Place to Work®.
Cask was also named a "Cool Vendor" in Gartner's 2016 report on
Pervasive Integration for its open source CDAP and Cask
Hydrator.
CloudMine was named "Cool Vendor" in mobile app
development by Gartner for its Connected Health Cloud. CloudMine's
Connected Health Cloud won a 2016 SIIA CODiE Award as Best
Information Service Delivered as a Mobile App. CloudMine was also
recognized as an IDC Innovator because its technology balances
lower-cost mobile app development platform subscription fees with
development of specialized APIs relevant to regulated
industries.
Clutch Holdings was named Top 5 in the Philadelphia
Business Journal's "50 On Fire" list of fast-growing public and
private companies based on its revenue growth from 2013 to
2015.
Full Measure Education earned the Complete College
America Guided Pathways to Success ("GPS") "Seal of Approval",
which recognizes industry tools and practices that facilitate
institutional effectiveness to achieve the goals of GPS.
Hoopla Software earned a 2016 Gold Stevie Award for the
category "Incentive Management Solution – New". The award
recognized Hoopla's success in building a platform that drives the
performance of sales and service teams through an incentive-based
platform that combines gamification, employee recognition, and
motivational communication tools.
InfoBionic and its cloud-based MoMe® Kardia
system earned the Frost & Sullivan 2016 North America Award for
New Product Innovation.
MediaMath ranked No. 2 on Business Insider's list of the
"37 hottest pre-IPO ad tech startups of 2016." CEO Joe Zawadzki was named 2016 Data Innovator of
the Year for leadership in data-driven marketing by the Data
Innovators Group and the Direct Marketing Club of New York. Fortune and Forbes magazines
separately listed MediaMath among the 100 Best Workplaces for
Millennials. Fortune also named MediaMath one of the 50 Best Places
to Work for new college graduates. MediaMath was recognized as a
"Visionary" by technology research firm Gartner in its Magic
Quadrant for Digital Marketing Hubs.
Pneuron was named New York SmartCEO's Future 50 award
winner, recognizing its revenue growth and staff additions. Pneuron
was named a "Breakout Vendor" in Big Data integration by Forrester
Research. Pneuron landed at No. 493 on the 2016 Inc. 5000 list of
fast-growing private companies. In addition, CRN®, a
brand of The Channel Company, named Pneuron to its 2016 list of
Emerging Vendors.
Propeller Health received the American Telemedicine
Association 2016 President's Award for Innovation in Remote
Healthcare.
Syapse was recognized at the White House Precision
Medicine Initiative Summit for its work with Intermountain
Healthcare to implement and systematize precision medicine. This
event, which included an address by then-President Barack Obama, showcased the achievements of
pioneers in bringing precision medicine into clinical practice.
Transactis earned "Best Innovation in ACH" during 2016
for its BillerIQ platform from the National Automated Clearinghouse
Association and PYMNTS.com. The award is bestowed at Harvard University based on voting by payments
industry peers.
Trice Medical won MedCity News' 'Best of INVEST' award in
2016 in the medical device category.
WebLinc co-founder and CEO, Darren Hill, was a finalist for the EY
Entrepreneur Of The Year™ 2016 Award in the Greater Philadelphia
Region. WebLinc was named a finalist for the 2016 SIIA CODiE Award
for Best eCommerce Solution.
Zipnosis was named a key company to watch in mHealth by
Frost & Sullivan, and was one of four companies recognized as
an IDC Innovator in U.S. virtual care for 2016 among companies with
less than $50 million in revenue. CEO
Jonathan Pearce was listed among the
100 leaders transforming healthcare through technology by Hot
Topics, a prominent tech news publisher. Zipnosis was also listed
among Minnesota's 2016 'Best
Places to Work' by the Minneapolis/St. Paul Business Journal.
~ Other Milestones ~
Cask Data reported that Ericsson has made a strategic
minority investment that is expected to accelerate delivery of
Cask's Apache Hadoop-based services for managing complex data
analytics to a range of industries.
Good Start Genetics added veteran management talent in
2016 to shepherd the company's continued growth, appointing
Jeffrey Luber as President and Chief
Executive Officer; Marc Jones as
Chief Financial Officer; and James
Frontero as Chief Commercial Officer. Good Start Genetics
also formed a pediatric scientific advisory board as the company
prepares to expand its footprint in genetic testing for families,
from preconception through early childhood. Advisors include
representatives from Verily (formerly Google Life Sciences),
Brigham and Women's Hospital in
Boston, and the Center for Applied
Genomics at Children's Hospital of Philadelphia.
NovaSom enhanced its sales strategies during 2016,
achieving "High Traction" status among Safeguard partner companies
with annual revenue of more than $20
million.
Propeller Health raised $21.5
million of capital in the fourth quarter of 2016 through a
Series C financing with participation by Safeguard, Social Capital,
3M Ventures, Glaxo Smith Kline's venture arm and Limited and Hikma
Ventures. Proceeds will help Propeller continue to add
devices and medications to its platform and boost sales and
marketing initiatives.
Syapse announced a $25
million Series C funding round in early 2016 led by
Ascension Ventures with participation from Safeguard and Social
Capital. Proceeds from the funding are being used to enhance the
Syapse Precision Medicine Platform, including support for
alternative payment models and expansion to new clinical service
lines.
Transactis completed a $30
million Series E financing during 2016 with equal
participation by Safeguard and five of the largest commercial banks
in the world – Capital One, TD, Wells Fargo, PNC and Fifth
Third.
WebLinc acquired Orderbot, a Vancouver-based order management system, to
process ecommerce orders, streamline warehouse and inventory
management in real time, and analyze customer-buying trends.
PARTNER COMPANY HOLDINGS AS OF DECEMBER 31, 2016
Partner Company
Revenue Stages
|
Development
Stage
- Pre-revenue
- Proving out
technology
- Developing
prototype
- Beta stage
customers
|
Initial Revenue
Stage
- Up to $5M in
revenue
- Initial
customers
- Early market
penetration
- Management team
forming
- Infrastructure
being built
|
Expansion
Stage
- $5M to $20M in
revenue
- Commercial grade
solution
- Growing
market
penetration
- Management team
built out
- Infrastructure
in place
|
High Traction
Stage
- $20M+ in
revenue
- Significant
commercial
traction
|
Partner
Companies
|
Stage
|
Category
|
Acquisition
Year
|
Primary
Ownership%
|
Carrying
Value
(in
millions)
|
Cost
(in
millions)
|
AdvantEdge Healthcare
Solutions
|
High
Traction
|
Healthcare
|
2006
|
40%
|
$5.2
|
$16.3
|
Aktana
|
Initial
Revenue
|
Healthcare
|
2016
|
31%
|
7.6
|
8.3
|
Apprenda
|
Expansion
|
Other
|
2013
|
29%
|
11.1
|
22.1
|
Beyond
|
High
Traction
|
Digital
Media
|
2007
|
38%
|
15.2
|
13.5
|
Brickwork
|
Initial
Revenue
|
Digital
Media
|
2016
|
20%
|
4.1
|
4.2
|
Cask Data
|
Initial
Revenue
|
Other
|
2015
|
31%
|
8.1
|
11.0
|
CloudMine
|
Initial
Revenue
|
Healthcare
|
2015
|
30%
|
3.0
|
5.5
|
Clutch
Holdings
|
Expansion
|
Digital
Media
|
2013
|
43%
|
10.7
|
16.3
|
Full Measure
Education
|
Initial
Revenue
|
Digital
Media
|
2015
|
35%
|
5.9
|
8.6
|
Good Start
Genetics
|
High
Traction
|
Healthcare
|
2010
|
30%
|
-
|
17.1
|
Hoopla
Software
|
Initial
Revenue
|
Digital
Media
|
2011
|
26%
|
0.1
|
4.8
|
InfoBionic
|
Initial
Revenue
|
Healthcare
|
2014
|
40%
|
2.7
|
14.5
|
Lumesis
|
Initial
Revenue
|
Financial
Services
|
2012
|
44%
|
1.9
|
6.2
|
MediaMath
|
High
Traction
|
Digital
Media
|
2009
|
21%
|
5.2
|
25.5
|
meQuilibrium
|
Initial
Revenue
|
Healthcare
|
2015
|
32%
|
5.2
|
8.0
|
Moxe
Health
|
Initial
Revenue
|
Healthcare
|
2016
|
32%
|
4.5
|
4.5
|
NovaSom
|
High
Traction
|
Healthcare
|
2011
|
32%
|
2.8
|
22.1
|
Pneuron
|
Initial
Revenue
|
Financial
Services
|
2013
|
35%
|
5.7
|
8.5
|
Prognos
|
Expansion
|
Healthcare
|
2011
|
35%
|
5.7
|
11.6
|
Propeller
Health
|
Initial
Revenue
|
Healthcare
|
2014
|
24%
|
9.3
|
14.0
|
QuanticMind
|
Initial
Revenue
|
Digital
Media
|
2015
|
23%
|
7.8
|
9.8
|
Sonobi
|
Expansion
|
Digital
Media
|
2015
|
22%
|
3.8
|
5.4
|
Spongecell
|
Expansion
|
Digital
Media
|
2012
|
23%
|
12.1
|
18.0
|
Syapse
|
Initial
Revenue
|
Healthcare
|
2014
|
26%
|
6.3
|
13.3
|
T-REX
|
Initial
Revenue
|
Financial
Services
|
2016
|
24%
|
6.0
|
6.0
|
Transactis
|
Expansion
|
Financial
Services
|
2014
|
24%
|
11.1
|
14.5
|
Trice
Medical
|
Initial
Revenue
|
Healthcare
|
2014
|
28%
|
3.9
|
8.1
|
WebLinc
|
Expansion
|
Digital
Media
|
2014
|
38%
|
8.4
|
12.0
|
Zipnosis
|
Initial
Revenue
|
Healthcare
|
2015
|
25%
|
5.7
|
7.0
|
|
|
|
|
TOTAL:
|
$179.1
|
$336.7
|
AdvantEdge Healthcare Solutions, Inc. (Salem, NH)
AdvantEdge is a technology-enabled provider of healthcare
revenue cycle and business management solutions that improve
decision-making, maximize financial performance, streamline
operations and mitigate compliance risks for healthcare
providers.
Aktana, Inc. (San
Francisco, CA)
Aktana is a pioneer in decision support for global life science
sales teams, currently improving the commercial effectiveness for
nearly half of the top 20 global pharmaceutical companies and more
than 50 brands. The company's data-fueled suggestions and
insights are delivered within a sales professional's existing CRM
workflow, serving as a critical ally in data leverage and better
decision-making.
Apprenda, Inc. (Troy,
NY)
Apprenda is a leading enterprise cloud platform company powering
the next generation of enterprise software development in public,
private and hybrid clouds. As a foundational software layer and
application run-time environment, Apprenda abstracts away the
complexities of building and delivering modern software
applications, enabling enterprises to turn ideas into innovations
more quickly.
Beyond.com, Inc. (King of
Prussia, PA)
Beyond helps millions of professionals find jobs and advance
their careers while also serving as the premier destination for
companies in need of top talent. This is achieved through more than
500 talent communities that use integrated social features to help
members discover relevant jobs, career news, career advice and
resources.
Brickwork (New York,
NY)
In a world where 90% of retail sales occur in-store but 80% of
store customers begin online, Brickwork powers new Pre-Visit
Experiences for customers of the world's leading brands and
retailers including Nike, Kate
Spade, Urban Outfitters, and Bonobos. Brickwork empowers
eCommerce and Marketing teams to engage mobile and online visitors
intending to buy offline with calls-to-action and experiences that
result in more qualified store visits and increased revenue.
Cask Data, Inc. (Palo
Alto, CA)
Cask makes building and running big data solutions on-premise,
or in the cloud, easy with Cask Data Application Platform ("CDAP"),
the first unified integration platform for big data. CDAP reduces
the time to production for data lakes and data applications by 80
percent, empowering the business to make better decisions
faster.
CloudMine, Inc. (Philadelphia, PA)
CloudMine empowers payers, providers and pharmaceutical
organizations to mobilize patient information by building robust
applications and driving actionable insights. Through support for
machine learning, data science, and predictive analytics, CloudMine
customers are improving the quality of care by leveraging cognitive
data analysis to determine patient interactions.
Clutch Holdings, Inc. (Ambler, PA)
Clutch helps companies get the most value they can from their
existing customers. Clutch's advanced Customer Management platform
delivers intelligence and personalized engagements empowering
consumer-focused businesses to identify, understand and motivate
their customer base.
Full Measure Education, Inc. (Washington, DC)
Full Measure Education is breaking new ground in digital
transformation for higher education. Full Measure Education's
Digital Student Experience (DSx) platform harnesses the power of
unified data and the reach of mobile devices to enable
personalization and simplicity for students.
Good Start Genetics, Inc. (Cambridge, MA)
Good Start Genetics is dedicated to helping grow healthy
families through its best-in-class genetics offerings. Using
advanced clinical sequencing, proprietary methods and information
tailored to the individual, the company's suite of offerings arms
clinicians and patients with insightful and actionable information
to promote successful pregnancies and help build healthy families.
The company's product portfolio, including GeneVu, EmbryVu and
VeriYou, encompasses a multifaceted approach to genetic testing,
featuring solutions for both preimplantation and carrier screening,
while offering comprehensive and flexible testing options helping a
wider range of couples find their paths to pregnancy at
significantly lower costs. Good Start Genetics complements these
offerings with world class customer care and genetic counseling to
help families stay well-informed and be better prepared for
tomorrow.
Hoopla Software, Inc. (San Jose, CA)
Hoopla amplifies performance for businesses of all sizes through
live data broadcasts of company news, key milestones and other
accomplishments. Companies use Hoopla to celebrate achievements and
keep employees connected, engaged and motivated.
InfoBionic, Inc. (Lowell,
MA)
InfoBionic is an emerging digital health company focused on
creating superior patient monitoring solutions for chronic disease
management with an initial market focus on cardiac arrhythmias.
Lumesis, Inc. (Stamford,
CT)
Lumesis is focused on providing regulatory, business efficiency
and analytical solutions to the municipal bond marketplace. Lumesis
is dedicated to serving the municipal market with industry-leading
solutions that meet the needs of an evolving regulatory
environment. Today, the company's DIVER platform helps hundreds of
firms with over 44,000 users efficiently meet credit, regulatory
and risk needs.
MediaMath, Inc. (New
York, NY)
MediaMath is a global technology company that is leading the
movement to revolutionize traditional marketing and drive
transformative results for marketers through its TerminalOne
Marketing Operating System®. MediaMath is the only
company of its kind to empower marketers with an extensible, open
platform to unleash the power of goal-based marketing at scale,
transparently across the enterprise.
meQuilibrium (Boston,
MA)
meQuilibrium is the leader in resilience solutions, helping
individuals, organizations and communities thrive in the face of
change and disruption, unleash creativity and innovation, and
re-imagine what is possible. The company's digital coaching tools
and people analytics optimize talent, well-being and business
opportunity and agility by measurably building resilience capacity
in workplaces at scale. Grounded in science, meQuilibrium has
validated results that prove a correlation between the adaptive
thinking it builds and the behaviors that lead to increased
engagement, productivity, and physical and mental health, as well
as decreased absenteeism and health expenses.
Moxe Health Corporation (Madison, WI)
Moxe Health provides a clinical data clearinghouse, facilitating
bi-directional exchange of clinical, analytic and administrative
data. Moxe's solutions include Substrate, an electronic medical
record integration platform, and Convergence, a framework for
embedding apps directly within EHRs. Through these solutions,
health systems and health plans share medical records, key patient
health insights, and timely claims data – eliminating the
inefficiencies of clinical data exchange.
NovaSom, Inc. (Glen
Burnie, MD)
NovaSom is a leader in obstructive sleep apnea home testing with
the AccuSom® home sleep test, a comprehensively
supported home sleep test that provides continuous patient support
and next-day test results and interpretation for health care
professionals.
Pneuron Corporation (Woburn, MA)
Pneuron enables organizations to leverage their existing
applications, infrastructure, services and data to create and
deliver actionable intelligence—in half the time and cost. Through
Pneuron's innovative, distributed approach, companies are no longer
faced with the complex centralization and integration requirements
of traditional approaches.
Prognos (New York,
NY)
Formerly known as Medivo, Prognos is focused on using artificial
intelligence and advanced analytics to improve health by tracking
and predicting disease as soon as possible. Through a nationwide
network of partner labs, the Prognos Registry consists of 5 billion
clinical diagnostics records for 100 million patients across 30
disease areas.
Propeller Health, Inc. (Madison, WI)
Propeller Health provides digital solutions to measurably
improve respiratory health. One of the first mobile platforms with
FDA clearance, Propeller Health combines sensors, mobile apps and
predictive analytics to monitor and engage patients, increase
adherence and encourage effective self-management.
QuanticMind, Inc. (Redwood City, CA)
QuanticMind is the pioneer of predictive advertising management
software for paid search and social channels. By reinvesting ad
management point solutions through machine learning, distributed
cloud computing, and in-memory processing, QuanticMind delivers the
most intelligent, scalable and fastest platform for maximizing
advertising performance for enterprises.
Sonobi, Inc. (New York,
NY)
Sonobi is an advertising tech developer that is redefining the
way media is transacted by putting people, not impressions, at the
center of every digital execution. Sonobi's JetStream platform
provides a direct interaction between publishers and advertisers,
enabling them to directly collaborate, plan and deliver engaging
experiences to buyer-defined consumers upfront and guaranteed.
Spongecell, Inc. (New
York, NY)
Spongecell's Creative Management Platform helps advertisers
enhance the power of digital brand creative by leveraging customer
data and brand content to personalize ads for maximum relevance.
Spongecell's Creative Optimization and Relevance Engine (CORE)
combines robust data integrations with powerful optimization and
decisioning tools, empowering advertisers to make smarter creative
decisions and build powerful campaigns that drive performance and
ROI.
Syapse, Inc. (Palo Alto,
CA)
Syapse drives healthcare transformation through precision
medicine, enabling provider systems to improve clinical outcomes,
streamline operations and shift to new payment models. Syapse
Precision Medicine Platform is a comprehensive software suite used
by leading health systems to support the clinical implementation of
precision medicine in oncology and other service lines, enabling
clinical and genomic data integration, decision support, care
coordination and quality improvement at point of care.
T-REX Group, Inc. (New
York, NY)
T-REX offers a secure, software-as-a-service enterprise
analytics, risk and portfolio management platform to global
investment banks, allowing them to finance, securitize and manage
assets efficiently and transparently across multiple classes.
Transactis, Inc. (New
York, NY)
Transactis is a leading provider of electronic billing and
payment solutions. Transactis' cloud-based electronic bill
presentment and payment platform, BillerIQ, is a white-labeled
solution that is offered "as-a-service," enabling businesses to
rapidly and securely deliver electronic bills, invoices and
documents as well as accept payments online, by phone and via
mobile device.
Trice Medical, Inc. (King
of Prussia, PA)
Trice Medical has pioneered and evolved a fully integrated
camera-enabled technology that provides a clinical solution
optimized for the physician's office. Trice's mission is to provide
more immediate and definitive patient care, eliminating the false
reads associated with current indirect modalities and significantly
reduce the overall cost to the healthcare system.
WebLinc, Inc. (Philadelphia, PA)
WebLinc helps great retailers sell more. WebLinc develops
modern, digital commerce technologies for growing ecommerce-focused
teams. WebLinc's cloud products, Workarea and Orderbot, power
commerce sites for dynamic, high-growth retailers including
Sanrio/Hello Kitty, Urban Outfitters, Inc.'s brands Terrain and
BHLDN, U.S. Polo Assn., Do it Best Corp., Woodcraft, Rachel Roy, and others.
Zipnosis, Inc. (Minneapolis, MN)
Zipnosis partners with health systems nationwide to provide a
white-labeled telemedicine virtual care platform, offering patients
convenient access to care while improving clinician efficiency.
Patients can be virtually treated for more than 90 conditions using
evidence-based adaptive interviews, phone or video, or when a rapid
test like strep is needed, directed to visit a clinic with
expedited service using the ZipTicket® boarding pass.
Zipnosis has more than sever years' experience and data to help
partners rapidly launch and scale a market-leading virtual care
solution.
CONFERENCE CALL AND WEBCAST DETAILS
Please call
10-15 minutes prior to the call to register.
Date: Thursday, March
2, 2017
Time: 9:00am ET
Webcast: www.safeguard.com/results
Live
Number: 877-201-0168 // (International)
647-788-4901
Replay Number: 855-585-8367
// (International) 416-621-4642
Access
Code: 63404139
Speakers: President
and Chief Executive Officer, Stephen T. Zarrilli; and Senior
Vice President and Chief Financial Officer, Jeffrey B.
McGroarty.
Format: Discussion of
fourth quarter and full-year 2016 financial results followed by
Q&A.
Replay will be available through April 2,
2017 at 11:59pm ET. For more
information please contact IR@safeguard.com.
About Safeguard Scientifics
Safeguard Scientifics
(NYSE:SFE) provides capital and relevant expertise to fuel the
growth of technology-driven businesses in healthcare, financial
services and digital media. Safeguard targets companies that are
capitalizing on the next wave of enabling technologies with a
particular focus on the Internet of Everything, enhanced security
and predictive analytics. Safeguard typically deploys between
$5 million and $25 million over the
course of its partnership with a company, initially investing in a
Series A or B Round and opportunistically in a Seed Round.
Safeguard has a distinguished track record of fostering innovation
and building market leaders that spans more than six decades. For
more information, please visit www.safeguard.com or
follow us on Twitter @safeguard.
Forward-looking Statements
Except for the
historical information and discussions contained herein, statements
contained in this release may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Our forward-looking statements are subject to
risks and uncertainties. The risks and uncertainties that could
cause actual results to differ materially include, among others,
our ability to make good decisions about the deployment of capital,
the fact that our partner companies may vary from period to period,
our substantial capital requirements and absence of liquidity from
our partner company holdings, fluctuations in the market prices of
our publicly traded partner company holdings, competition, our
inability to obtain maximum value for our partner company holdings,
our ability to attract and retain qualified employees, market
valuations in sectors in which our partner companies operate, our
inability to control our partner companies, our need to manage our
assets to avoid registration under the Investment Company Act of
1940, and risks associated with our partner companies, including
the fact that most of our partner companies have a limited history
and a history of operating losses, face intense competition and may
never be profitable, the effect of economic conditions in the
business sectors in which Safeguard's partner companies operate,
and other uncertainties described in our filings with the
Securities and Exchange Commission. Many of these factors are
beyond the Company's ability to predict or control. As a result of
these and other factors, the Company's past financial performance
should not be relied on as an indication of future performance. The
Company does not assume any obligation to update any
forward-looking statements or other information contained in this
press release.
SAFEGUARD CONTACTS:
For Investor Relations
John E. Shave III
Senior Vice President, Investor Relations and Corporate
Communications
610.975.4952
jshave(at)safeguard(dot)com
For Media Relations
Heather R. Hunter
Vice President, Corporate Communications
610.975.4923
hhunter(at)safeguard(dot)com
Safeguard
Scientifics, Inc.
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Cash, cash
equivalents and marketable securities
|
|
$
|
30,442
|
|
|
$
|
63,858
|
|
Other current
assets
|
|
2,109
|
|
|
5,810
|
|
|
Total current
assets
|
|
32,551
|
|
|
69,668
|
|
Ownership interests
in and advances to partner companies
|
|
183,470
|
|
|
171,601
|
|
Loan participations
receivable
|
|
—
|
|
|
2,649
|
|
Long-term marketable
securities
|
|
7,302
|
|
|
9,743
|
|
Long-term restricted
cash equivalents
|
|
6,336
|
|
|
—
|
|
Other
assets
|
|
2,169
|
|
|
3,182
|
|
Total
Assets
|
|
$
|
231,828
|
|
|
$
|
256,843
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Other current
liabilities
|
|
5,861
|
|
|
6,417
|
|
|
Total current
liabilities
|
|
5,861
|
|
|
6,417
|
|
Other long-term
liabilities
|
|
3,630
|
|
|
3,965
|
|
Convertible senior
debentures - non-current
|
|
52,560
|
|
|
50,956
|
|
Total
equity
|
|
169,777
|
|
|
195,505
|
|
Total Liabilities
and Equity
|
|
$
|
231,828
|
|
|
$
|
256,843
|
|
|
|
|
|
|
|
Safeguard
Scientifics, Inc.
|
Condensed
Consolidated Statements of Operations
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
Operating
expenses
|
|
$
|
3,928
|
|
|
$
|
3,958
|
|
|
$
|
18,692
|
|
|
$
|
17,554
|
|
Operating
loss
|
|
(3,928)
|
|
|
(3,958)
|
|
|
(18,692)
|
|
|
(17,554)
|
|
|
|
|
|
|
|
|
|
|
Other income (loss),
net
|
|
64
|
|
|
(84)
|
|
|
(1,682)
|
|
|
217
|
|
Interest,
net
|
|
(554)
|
|
|
(692)
|
|
|
(2,559)
|
|
|
(2,588)
|
|
Equity income
(loss)
|
|
(17,283)
|
|
|
(9,537)
|
|
|
671
|
|
|
(39,599)
|
|
|
|
|
|
|
|
|
|
|
Net loss before
income taxes
|
|
(21,701)
|
|
|
(14,271)
|
|
|
(22,262)
|
|
|
(59,524)
|
|
Income tax benefit
(expense)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net loss
|
|
$
|
(21,701)
|
|
|
$
|
(14,271)
|
|
|
$
|
(22,262)
|
|
|
$
|
(59,524)
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(1.07)
|
|
|
$
|
(0.69)
|
|
|
$
|
(1.09)
|
|
|
$
|
(2.85)
|
|
Diluted
|
|
$
|
(1.07)
|
|
|
$
|
(0.69)
|
|
|
$
|
(1.09)
|
|
|
$
|
(2.85)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in computing
loss per share :
|
|
|
|
|
|
|
|
|
Basic
|
|
20,357
|
|
|
20,821
|
|
|
20,343
|
|
|
20,874
|
|
Diluted
|
|
20,357
|
|
|
20,821
|
|
|
20,343
|
|
|
20,874
|
|
|
|
|
|
|
|
|
|
|
Safeguard
Scientifics, Inc.
|
|
Partner Company
Financial Data
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
Financial Information
|
|
To assist investors
in understanding Safeguard and our 29 partner companies as of
December 31, 2016, we are providing additional financial
information on our partner companies, including the aggregate cost
and carrying value for all of our partner companies and other
holdings. Carrying value of an equity method partner company
represents the original acquisition cost and any follow-on funding,
plus or minus our share of the earnings or losses of each company,
reduced by any impairment charges. The carrying value and
cost data reflect our percentage holdings in the partner companies
and reflect both equity ownership interests in and advances to
those partner companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying
Value
|
|
Cost
|
|
|
Safeguard Carrying
Value and Cost
|
|
|
|
|
|
|
Equity method partner
companies
|
|
|
|
|
|
|
|
$
|
179,111
|
|
|
$
|
336,832
|
|
|
|
Other
holdings
|
|
|
|
|
|
|
|
4,359
|
|
|
37,254
|
|
|
|
|
|
|
|
|
|
|
|
$
|
183,470
|
|
|
$
|
374,086
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/safeguard-scientifics-announces-fourth-quarter-and-full-year-2016-financial-results-300416552.html
SOURCE Safeguard Scientifics, Inc.